INTRODUCTION TO

ENTREPRENEURSHIP
CHAPTER 1
 U R It is also the capacity and
N E willingness to develop,
R E organize, and manage a
EP business venture along with
T R any of its risks in order to
EN make a profit.

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 9 IMPORTANCE OF ENTREPRENEURSHIP
GROWTH OF
ENTREPRENEURSHIP
• Entrepreneurship the advent of
new venture particularly small
ventures in order to materialize
the innovative ideas of the
entrepreneurs
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• Entrepreneurship firms contributed a
large share of new jobs. It provides
entry-level jobs so necessary for
training or gaining experience for
unskilled workers.
CREATION OF JOB
2 OPPORTUNITIES
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 9 IMPORTANCE OF ENTREPRENEURSHIP
INNOVATION
• It goes beyond discovery and
does implementation and
commercialization of
innovations.
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• Entrepreneurship leads to a more
stable and higher quality of
community life.
IMPACT ON COMMUNITY
4 DEVELOPMENT
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 9 IMPORTANCE OF ENTREPRENEURSHIP
THE CONSEQUENCE OF
BUSINESS FAILURE
• The collapse of the large industry
almost has irresistible damage to
the development of the state and
the state of the economy and the
financial condition of the relevant
persons
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• Entrepreneurship is the most effective
way of integrating those who feel
disposed of and alienated into the
economy.
POLITICAL AND ECONOMIC
6 INTEGRATION OF OUTSIDERS
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 9 IMPORTANCE OF ENTREPRENEURSHIP
SPAWNS
ENTREPRENEURSHIP 5
• provides a wide spectrum of
ventures and entrepreneurs in
every economy. The vast open • it increases the income of the people
arena of entrepreneurship thus who are employed in entrepreneurial
acts as an incubator to enterprises.
entrepreneurs.
POLITICAL AND ECONOMIC
6 INTEGRATION OF OUTSIDERS

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 NATURES OF GLOBALIZATION

ECONOMIC REFORMS 7
• Encouraging fiscal and financial
reforms with a view to give
strength to free world trade, free
enterprise, and market forces

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 TYPES OF
ENTREPRENUERS

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 The Skeptical
Entrepreneur
This entrepreneur sees of
others and immediately
starts to question it. They
examine that person’s
business and looks for the
“lucky” breaks, or
inheritance they think that
successful entrepreneur
received.

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 The Copycat
Entrepreneur
This entrepreneur sees the
success of others and tries
to copy them exactly. Their
website is the same, their
business cards are the
same, and the way they
present themselves is the
carbon copy of a leader in
their industry.

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 The Research
Entrepreneur
This entrepreneur loves to
learn. They research every
possible scenario and
outcome for strategies to
start or grow a business.
There is nothing wrong with
learning, but when it’s all
that you do, it becomes a
problem.

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 The Determined
Entrepreneur
This entrepreneur hasn’t
“made it” but they will, no
matter what. They see the
value in entrepreneurship,
they see that success is
possible without copying,
and they do everything
they can to start or grow
their business.

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 The Accomplished
Entrepreneur
This entrepreneur has gone
through all the stages of
entrepreneurship and
building a business and has
reached success. They are
now focused on scaling their
business and leaving a
legacy that extends beyond
their lifetime.

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 The
Entrepreneur’s
Task

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Figure 1. The Entrepreneur’s Task

Land Labor Capital

(Natural Resources) (Human Resources) (Financial Resources)

Entrepreneur

Production
Process

Finished Goods
and Services Contoso Ltd.
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In the attempt to make profits, the entrepreneur performs the
following specific functions:

1.To supply the necessary capital;

2.To organize production by buying and combining inputs
like materials and labor;
3.To decide on the rate of output, in the light of his
expectation about demand; and
4.To bear the risk inherent to the venture.
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 New Ventures and Long-Term Enterprises
1. Formation of the business;
2. Generation of necessary capital;
3.
4.
Purchase of facilities and equipment;
Constructing prototype products; and 4. The late growth stage
5. Testing the market

3. The early growth stage

2. The start-up stage

1. The prestart-up stage Contoso Ltd.

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 Rewards for Successful Entrepreneurship
○ form of compensation
○ The factors referred to as “things required for making a commodity”

Figure 2. The Factors of Production and Their Rewards

Factors of Economic Limiting Factor for Rewards

Production Reward Received
Land Rent supply and demand

Capital Interest industry rates/ government mandated rates

Labor wages/salary supply and demand legislation

Entrepreneur Profits skill of entrepreneurs Contoso Ltd.

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Entrepreneurship and Business Size
○To effectively compete, business of whatever size
must adapt innovative approaches to its activities.
Examples of innovations are the following:
1. Offering business services during Sundays and
holidays;
2. Manufacture and sale of new products; and
3. Selling on a deferred payment scheme.

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Contoso Ltd.
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